News From USWA: USWA Announces ``Overwhelming'' YES Vote in Ratification of Labor Agreement With Titan Tire Corp.

Business Editors

DES MOINES, Iowa--(BUSINESS WIRE)--Sept. 26, 2001

Leaders of the United Steelworkers of America (USWA) announced tonight that members of USWA Local 164 ratified a labor agreement with Titan Tire Corp., a subsidiary of Titan International Inc. (NYSE:TWI) of Quincy, Ill.

USWA Local 164 members voted by a margin of 77 percent to 23 percent in a heavy turnout to ratify the agreement after receiving a recommendation to ratify from the Local 164 Executive Board and the local's negotiating committee. The agreement shall be effective retroactive to Aug. 1, 2001 and will run through Dec. 15, 2006.

The ratification of the 54-page agreement by the 670-member local ends a bitter 40-month long labor dispute that began May 1, 1998. During the course of the dispute, the company replaced Local 164 members and was cited for numerous unfair labor practices by the federal National Labor Relations Board (NLRB).

USWA Local 303L of Natchez, Miss. also became entwined in a dispute on Sept. 14, 1998 with Titan Tire Corp. of Natchez -- another subsidiary of Titan International Inc. -- after Titan acquired that plant in a complex bankruptcy procedure involving a number of companies owned or controlled by Titan CEO Morry Taylor. Titan discharged and replaced the entire workforce after acquiring the plant. Titan then "mothballed" the plant in June 2001 according to CEO Taylor.

The 320 members of the Natchez local have also reached a tentative agreement with Titan and will soon hold a ratification election. A handful of maintenance workers now operate the plant, but the company says it intends to reopen it if market conditions allow.

The Des Moines agreement contains many significant gains, including:

-- All Local 164 members who want to return to work will return with full
seniority rights;

-- An unprecedented defined benefit pension plan through the Steelworkers
Pension Trust. The fund is guaranteed by the federal Pension Benefits Guarantee
Corp. and will pay a $90.00 multiplier for each year of service upon a worker's
vesting and qualifying for benefits;

-- An early retirement program guaranteed by the Steelworkers Pension Trust;

-- Wage increases for all returning members of $2.80/hr. over the life of the
agreement;

-- A commitment from the company to operate the Des Moines plant as its
flagship tire plant and a statement of an intention to reopen the Natchez plant
when economically feasible;

-- Reductions in mandatory overtime and a guarantee of every other weekend off;


-- A continuation of the current healthcare plan with only modest member cost
increases;

-- Strong successorship rights should Titan ever decide to sell the Des Moines
facility.

Additional improvements include strict limits on the use of outside contractors for bargaining unit work, a "Solidarity contribution" of up to $500,000 to the Natchez local by the company, and bereavement leave improvements. Also, the company agrees to dismiss certain legal actions, and the union has agreed to drop NLRB cases as a condition of settlement. Any other outstanding legal issues will be decided through normal legal processes.

The agreement is accompanied by a Return to Work Agreement that spells out the process to reintegrate all USWA members who wish to return to work. That agreement specifies that all willing and eligible Local 164 members ("seniority employees") will return to work within 60 days, if there is work available. Those seniority employees will be offered reinstatement to the positions that they originally worked, or "substantially equivalent" positions if a job was eliminated during the dispute.

"After more than 40 months of struggle, we are proud that our members have overwhelmingly ratified this groundbreaking agreement," said USWA Local 164 President John Peno. "The economic gains we have made are real and significant, but they are just one part of the story. This agreement is not just a piece of paper, but a true testament to the Solidarity of 1,000 USWA families and to our belief that we could make this world a little better for our families, our children and workers around the globe who made our fight their fight."

"We are extremely happy to see that Local 164 has ratified their agreement and we look forward to putting our tentative agreement before our members in the near future," said USWA Local 303L President Leo 'T-Bone' Bradley. "We realize that the best hope for the Natchez plant lies in our having a fair labor agreement with Titan."

"The Des Moines agreement and the tentative agreement in Natchez are the results, first of all, of the Solidarity of the 1,000 families in both locals," said USWA International President Leo Gerard. "But the Campaign for Justice at Titan International Inc. did not end there: it began there.

"We put the full resources of the United Steelworkers of America into this long, and ultimately successful, fight. Also we received massive aid from our brother and sister unions throughout the U.S. labor movement and the AFL-CIO. We strengthened our alliances with unions in South America and Europe around this campaign.

"We developed new labor/faith alliances that will live long after these contracts expire. We worked closely with progressive legislators in the U.S. and abroad. We worked closely with environmentalists and other progressives who are fighting to see that the global economy benefits working people and does not despoil our world. The United Steelworkers of America will not quit. We will be in the fight for justice until justice is achieved."